DIP TUBE BULLETIN UPDATE

January 2001

In November 1999  major water heater manufacturers entered into a national class action settlement with a group of more than 14,000,000 consumers nationwide to provide effective relief for their dip tube problems. In connection with the national class action settlement, the water heater manufacturers engaged in a far-reaching and comprehensive notice program, in which they:

·        published notice of the settlement in nearly 900 newspapers and magazines, including a full-page ad in the USA Today;

·        sent notice by mail to more than 133,000 licensed plumbers nationwide and to  hundreds of municipal water authorities and home owners’ associations;

·        sent a press release (including video) to thousands of daily and weekly newspapers and television stations throughout the country;

·        created a website detailing the settlement program and established a toll-free dip tube hotline number; and

·        published information about the settlement in Spanish in the country’s twelve largest Spanish publications.

In addition stories on the dip tube issue ran in numerous trade publications, newspapers, magazines and on TV.  By way of example, Good Morning America ran a feature story on the dip tube issue.  The Wall Street Journal and Consumer Reports magazine also chronicled the dip tube problem.

Under the terms of the Order of Final Approval of the Settlement by the United States District Court for the Western District of Missouri, the deadline for consumers filing claims under the settlement expired on December 31, 2000.  This deadline was agreed to by counsel for the class of consumers and approved by a Federal Judge.

As of January 1, 2001 consumers may no longer make dip tube claims to either the Settlement Administrator or to water heater manufacturers.  Consumers who timely filed claim forms will continue to be serviced by the Settlement Administrator.  Please allow 4 to 6 weeks for processing.

Due to the expiration of the filing deadline, water heater manufacturers will not accept any claims for dip tube related expenses or costs filed on or after January 1, 2001.